HDFC Securities Recommends Bharat Electronics Ltd (BEL) Stock: Target Price Set at Rs 317-340
If you’re looking to invest in a quality stock, Bharat Electronics Limited (BEL) could be a promising option. Market experts are bullish on BEL, with HDFC Securities recommending it as a buy for a 6-9 month investment horizon. The brokerage has set a target price of Rs 317-340 for the stock, which is currently trading at Rs 297.
Bharat Electronics Ltd: Company Overview
Bharat Electronics Ltd, a leader in the defense sector, was established in 1954 and is one of India’s prominent public sector companies. The company operates in various segments, including electronic components, equipment, services sales, and rentals, all contributing to its revenue generation. As of the financial year ending March 2024, Bharat Electronics is projected to have a market capitalization of Rs 2,17,100.43 crore.
In its latest quarterly results (September 2024), Bharat Electronics reported a consolidated total income of Rs 4,762.66 crore, a 7.09% increase over the previous quarter and a 14.87% rise compared to the same quarter last year. The company also posted a net profit of Rs 1,083.88 crore, indicating strong growth potential.
Why Experts Are Bullish on BEL
HDFC Securities believes that Bharat Electronics has a competitive edge over its peers due to its strong market position, collaboration with the armed forces, and robust manufacturing and infrastructure capabilities. The company also has a significant order book, which suggests potential for continued growth and upward movement in its stock price.
Bharat Electronics’ strategic advantages, combined with its ongoing R&D initiatives, make it well-positioned to capitalize on the growing demand in the defense sector. The company’s stock is expected to reach the target price of Rs 317-340 in the next 6-9 months, according to the brokerage’s analysis.
